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Sunday 26 March 2017

Benefits rise faster to account for shorter terms of service

Anne-Marie Walsh

JUDGES' pensions are different to most public servants' because they grow faster.

Like the average public servant, they are entitled to an annual pension worth up to half a year's pay when they retire. They can also get a pension lump sum worth up to one-and-a-half times' their salary.

But the value of their pension benefits rises far more quickly than it does for most state employees, so they can avail of full pensions in a much shorter timeframe.

Their fast-track pensions are calculated at either 1/40th or 3/80ths of their salary for each year they serve, compared with 1/80th in the wider public service.

The fact their pensions can rise three times faster is to compensate them because their term of service tends to be shorter.

However, now they are arguing that they should get the same terms as other public servants when it comes to early retirement.

This would allow them to avoid major cuts in their pensions after February.

The Government has moved to reduce these accelerated pensions, under a new single public service pension scheme.

But the new scheme will not affect serving judges or other workers who currently enjoy accelerated pensions.

Irish Independent

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